Rupee gains 13 paise against US dollar on strong equities

The rupee today closed 13 paise higher at Rs44.86/87 against the US currency on fresh selling of dollar by banks and exporters and gains in equity markets.
    
Dollar weakness in overseas markets mainly boosted the value of rupee against the US currecy, a dealer said.
    
"Positive equity markets, which closed well above 1%," lead the rupee movement, Alpari India CEO Pramit Brahmbhatt said.
    
At the Interbank Foreign Exchange (Forex) market, the rupee opened higher at Rs44.91/92 per dollar as against the previous closing level of Rs44.99/45.00 per dollar.
    
It hovered in a range of Rs44.83 to Rs45.05 before settling the day at Rs44.86/87 per dollar. The US dollar fell in New York yesterday after hitting its highest level against the euro in more than six weeks, as commodities strengthened, turning equities higher and reducing the greenback's appeal against riskier assets.
    
In London, the euro rose against the dollar after strong growth data in France and Germany bolstered speculation that a healthy euro zone economy would keep interest rates in the region higher than the US ones.
   
Meanwhile, the US crude futures were trading above $99 a barrel in London today. The rupee premium for the forward dollar closed steady to better on stray paying pressure from banks and corporates. The benchmark 6-month forward dollar premium payable in October finished stable at 137-139 paise.
    
Far-forward contracts maturing in April ended higher at 280-282 paise from 278-280 paise previously.
The RBI has fixed the reference rate for the dollar at Rs44.91 and the euro at Rs64.03.
    
The rupee moved up further against the pound sterling to end at Rs72.95/97 from yesterday's closing level of Rs73.15/17, while declined against the euro to close at Rs64.05/07 from Rs63.71/73 previously.
    
It, however, recovered against the Japanese yen to Rs55.57/59 per 100 yen from last close of Rs55.61/63.